If however, the individual has had no change in circumstance and they are on state benefits, the chances are that the borrowing that they were involved with was most probably at the time of 2005-8 where irresponsible lending was big business and many were caught up in believing that they could afford to borrow and that it was okay to consider borrowing against state benefits considering them as a regular income.

State benefits are not given out with the intent for the recipient to use to borrow against, they are a short term or long term supportive measure from the Government!

The suggestion we have at Lewis Alexander is for the Government to consider in a selection of trial cases, paying off directly to the lender by means of settlement in full and final, a clients debt who is currently receiving state benefits, therefore hopefully obtaining a discount for the early settlement on behalf of the client.

Yes, this would involve maybe more quantitative easing but would then be possible for the Government to reclaim the monies owed by the client by deducting it from the clients benefit payments at source. This claw back would have to be at an affordable rate to the consumer but would most probably work out less each month than currently committed to and would offer certainty of an end to the problem.

(A debt relief order was brought in for people with debts under £15000 and is a great personal debt solution but does not suit all situations.)

This may create the need for cross referencing between government departments but it would certainly relieve the pressure and stress from the individual client and add some positive cash flow to any respective creditors involved. It would also put a needed end to some of the ridiculous personal debt situations that people have found themselves in today!

Brief benefits to above suggestion;

Consumer peace of mind

Creditor cash flow

Government reduction in benefit payments

Here at the Lewis Alexanderdebt consolidation service, we believe that only an economist, analyst or someone of such a qualified standing would be able to work out further if our suggestion has any potential benefit to any party involved.